Cambodia's construction sector shows 8 percent drop in H1
(MENAFN) In the first half of 2024, Cambodia's construction sector attracted a total investment of USD2.53 billion, representing an 8 percent decrease compared to the same period in the previous year, according to a government report released on Saturday. This decline reflects a slowdown in investment in the sector, which is a critical component of Cambodia's economic landscape.
During the January to June period, the Cambodian government issued licenses for 1,642 construction projects, marking an 11 percent reduction from the previous year. The approved projects encompassed a diverse range of developments, including new towns, residential and commercial buildings, condominiums, industrial facilities, tourism resorts, and hotels, highlighting ongoing but diminished activity across various segments of the construction industry.
The construction and real estate sectors are pivotal to Cambodia's economy, alongside garment, footwear, and travel goods exports, tourism, and agriculture. However, recent forecasts from the Ministry of Economy and Finance suggest that the construction and real estate sectors are expected to experience sluggish growth in 2024. This anticipated slowdown reflects broader challenges within the sector and a cooling in real estate activity.
Hoe Ee Khor, chief economist at the ASEAN+3 Macroeconomic Research Office, indicated that the Cambodian construction sector might face a slower recovery, potentially not returning to pre-pandemic growth levels due to a prolonged downturn in real estate. Despite this, Khor noted that increased investment in infrastructure could partially counterbalance the weakness in the real estate sector, offering some support to overall sector performance.
MENAFN02092024000045015839ID1108626227
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.